A fundamental principle in demand analysis is that a change in price leads to
A. a complementary movement on the supply curve.
B. a movement along the demand curve.
C. a rightward shift of the demand curve.
D. a leftward shift of the demand curve.
Answer: B
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Which of the following fiscal policy changes would be the most contractionary?
A. A $40 billion increase in taxes B. A $20 billion increase in taxes and a $20 billion cut in government purchases C. A $30 billion increase in taxes and a $10 billion cut in government purchases D. A $10 billion increase in taxes and a $30 billion cut in government purchases
If a country has a comparative advantage in producing a product, it may or may not have an absolute advantage in producing that product
Indicate whether the statement is true or false
Which of the following best represents the effects of a decrease in the price of belts, other things being equal?
a. An upward movement along the demand curve for belts. b. A downward movement along the demand curve for belts. c. A rightward shift in the demand curve for belts. d. A leftward shift in the demand curve for belts.
Related to the Economics in Practice on p. 26: One reason for the increase in sales of frozen foods from $1 billion in 1950 to $53 billion in 2016 is the
A. increased opportunity cost of cooking frozen meals. B. decrease in popularity of the microwave oven. C. increased opportunity cost of preparing home-cooked meals. D. decrease in the number of women in the labor force.